Steps taken in the Department of Industrial Policy & Promotion for implementing the recommendations in the Report on ‘Reforming Investment Approval & Implementation of Project, Part-II’

 

Setting up of Re-engineering Group

            A Re-engineering group was set up in the Department in December, 2002.  Action plans for completion of re-engineering were prepared with specific time limits for completion of activities.  Officers at the level of Deputy Secretary/Director were assigned the specific responsibility of undertaking re-engineering of the regulatory processes and implementation of other recommendations in respect of activities under their charge.

 Re-engineering of Acts, Rules and Regulations administered by the Department.

Each provision of the Acts, Rules, Regulations, being administered by the Department and its Attached and Sub-ordinate Offices and Autonomous Organizations attached with the Department was examined for further simplifications, in light of the criteria recommended at paragraph 4.10 of the report.  The following activities have been taken up in the Department:

 

i.                   Earlier, a Letter of Intent (LOI) was issued for sectors/activities under compulsory license under the Industries (Dev. & Reg.) Act, 1951. The LOI was converted into Industrial License on completion of specified formalities.  Towards simplification of procedures for issue of Industrial License the stage of LOI has been dispensed with for all sectors/activities except for items reserved for SSI sector and an Industrial License is now issued without going through the stage of LOI. ( Press Note No. 4 of 2003 series) 

ii.                 The form for obtaining the ‘Carry on Business’ license by SSI units crossing the investment limits for SSI units has been simplified. (Press Note No. 1 of 2003 series) 

iii.                Domestic companies have been permitted to make royalty payment without restriction on duration. (Press Note No. 2 of 2003 series) 

iv.                 Salt (Reserve Stock) Order, 1955 under the Salt (Cess) Act has been withdrawn. 

v.                   The time limit for issue of Export-worthy Certificate under the provisions of Quality Control & Export Inspection Act, 1953 has been reduced from 7days to 3 days. 

vi.                 Registration of Salt Iodization Unit is done now in 15 days instead of 25 days. 

vii.               Time limit for recording establishment of refinery has been reduced to 30 days from 45 days. 

viii.             14 registers in the Salt organization have been merged into 4 while the following 8 have been abolished : 

a.         Register of over-time work

b.          Monthly statement of OT claims

c.          Register of short receipt of cess (Recapitulation statement)

d.          License Register

e.          Manufacturers’ Petition Register

f.           Storage Petition Register

g.          Progress and replacement of old leases and licenses

h.          AC-4 Day book of Receipts 

v.                   Design Rules have been amended to permit Branch Offices to received applications. 

vi.                 Draft revised Explosive Rules incorporating simplifications in the procedures, providing for increasing the validity of the licenses, decreasing the periodicity of filing returns, professional outsourcing of certain approvals, etc., have been finalised and are under legal examination. 

vii.              Proposals for simplifications in provisions, implemented by the Chief Controller of Explosives, under the Petroleum Rules, have been sent to the Ministry of P&NG for finalization. 

viii.         Draft Gas Cylinder Rules have been notified on 20.10.2003 for inviting objections/suggestions.  Suggestions/Objections are being examined and final Notification would be issued shortly.

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